Customer Experience Strategies and Value Proposition of Morrison

This report discusses the value proposition and customer experience strategies used by Morrison, a UK retail chain. It also provides strategic recommendations to enhance the customer experience which can contribute to organizational growth. The report covers the six pillars of customer experience model and its application into the Morrison Company, implications of digital disruptions, and market segmentation and targeting strategies.

MG526 Customer
Experience
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Value proposition.........................................................................................................................3
Delivering customer experience..................................................................................................3
Customer overview......................................................................................................................4
The six pillars of customer experience model and its application into the Morrison Company. 5
Implications of digital disruptions...............................................................................................7
Strategic recommendations over which the Morrison improves their customer experiences in
order to benefit them and the company as well...........................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Customer experience is defined as the integration of sensory, cognitive as well as
behavioural response of customers during various stages of product or service consumption. In
order to grow and retain csutomers for long term it is vital for the organisations to improve
various aspects of customer experience such as packaging, quality, advertisement, reliability as
well as feasibility. Morrison is considered among one of the top and largest UK retailing chain
with more than 400 stores (Morrisons corporate, company history, 2022). This supermarket used
to provide wide range of products including food items, households, clothing as well as other
retailing products. This report will discuss the value proposition and customer experience
strategies used by Morrison. It will also provide strategic recommendations to enhance the
customer experience which can contribute in organisational growth.
TASK
Value proposition
The value proposition offered by Morrison is the vast range of freshly prepared food
products at affordable price range. As compare to the leading competitors such as Tesco, Asda,
Morrison used to provide more choices for the customers which are even freshly prepared by
Morrison as producer. This used to attract the attention of majority of csutomers because they do
not get such variety of food range at other retail segments (Quach and et.al., 2020). In addition to
the differentiation affordable pricing as well as highly satisfactory customer services are also
reason which drives good customer experience. Morrison has also adopted the changing pace of
digital technology and has quickly shifted to approaches like digital marketing, online delivery
services and communication so that its services can be improved and higher value can be
provided to customers.
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Delivering customer experience
Retail industry is highly competitive in terms of price war thus Morrison emphasised on
creating value through product differentiation rather than putting unreliable attempt on indulging
in pricing wars. Most of the competitors of Morrison used to offer only a limited range in food
products. Thus Morrison put great effort and priority in extending its product range so that
customers can get a new and quality experience. For instance, identifying the recent trend of
growing vegetarian population Morrison introduced vegan and vegetarian food choices. This
attracted a new customer segment which is highly driven towards healthy food options because
such options are not given by other retailers. In addition to this to improve the customer
experience Morrison also focuses on upgrading its every customer touch point. For instance,
organisation uses interactive and easy website, mobile applications, and search engine
optimisation to keep itself high on searching phase. To promote and communicate with
customer’s organisation uses call, mailing as well as social media platforms (Shi and et.al.,
2020). The quick response of organisation towards customer need and feedback make it a
reliable choice among targeted csutomers. Morrison has always manifested that it believes in
delivering high quality and fresh food services in affordable price range. This is even appreciated
by its customers who gets plenty of choices in store.
Customer overview
The most dominating customer segment of Morrison includes the individuals who are in
search of regular supply of freshly prepared food products. Morrison offers vast range of choices
to food lovers who are seeking all types of foods such as vegan, healthy, vegetarian as well as
non-vegetarian options. In addition to the food range, other items sold at Morrison such as
household or clothing are also preferred by people of average age group 10-50 years. In response
to the extreme competition in the retail sector Morrison has adopted moderate pricing strategy
and offers low prices as compare to its leading competitors. Thus the majority of customers who
are included in the segmentation of Morrison are middle or high income group customers who
are ready to pay good value against high quality services and products. The customers of
Morrison also belong the group who makes regular purchases. Since food and household
equipment’s are frequently needed the customer groups of Morrison used to have higher buying
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frequency (Briedis and et.al., 2020). Customers of Morrison are also classified as the one who
used to choose good brand value and high customer experience in retail services. The availability
of retail as well as wholesale services enhances the number of customers who are seeking the
affordable and higher quantity of products available from the reputed brand.
The six pillars of customer experience model and its application into the Morrison Company
The six pillars of experiences which have been shown as an essential feature of the
experiences that has been experienced by customers as it helps to provide commercial benefits to
the behaviour which make sure because of the customer experience. The pillars include:
 Integrity: Corporate integrity as well as its final results consistently focuses towards the
leading companies. Reengagement with the purpose, validation and moving towards
corporate social responsibility to the forefront of the brand have been key areas for
Morrison. Corporate behaviour is not at all included into such inspection. The fast and
growing uptake into electronic commerce across all ages have bought privacy; data
security and cybercrime at forefront for mind both Morrison and their customers. Within
this phase the Morrison wants to be trustworthy and engendering trust level among their
users (Tjakraatmadja and Handayani, 2019). Companies just like Morrison shows their
trustworthiness on consistent basis are the basic thing about the integrity. Trust and
integrity are found into Morrison provides a sense of purpose and the ways in which it
socially, morally and ethically discharges this specific purpose to their users.
 Resolution: Consumer problem resolution which has moved beyond just fixing issues
that a company may cause for their consumers into focuses towards customer life time
issues which are a source of innovation along with a mechanism for extending a trusted
relationship. Morrison has to look into the pain points of their users and their processes in
order to identify impacts of both over the customer journey. At this stage, the Morrison
turn their poor experiences into the good ones as it is the most significant stage in context
of recover their customers from their bad experiences. As sometimes it has been
identified that irrespective of a great procedure, things will sometimes go wrong. Thus,
Morrison processes such things which make their customers back into the position at
stage in which they should have been as soon as possible.
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 Expectations: this basically includes the trend of expectations which have been transfer
as consumer expects their best experiences with any company to be replicated elsewhere
and this is becoming more evident that consumers embrace a propel of new technologies.
Firms have to rapidly enhance the swiftness of innovation and expansion in order to keep
up which is driving an improvement across all aspects of businesses (Sorrentino, 2020).
New and advanced technologies which include artificial intelligence and machine
learning are pushing the limits about what is possible each day which in turn is leading
towards an escalation into consumer expectations. Customer feedback plays a
considerable role both to fulfil consumer expectations and how such experiences are
meeting their expectations but also the ways in which those expectations are changing
which are based upon experiences with their other competitors. It is basically a way in
which Morrison meet, manage and exceeding consumer expectations as well as set high
standards. Thus, it is normal for users to have high level of expectations over the
requirements that are based upon the set standards encountered to them.
 Time and effort: Efforts and loyalty are highly connected to each other, as the easier an
experience is he less emotional, physical and cognitive efforts it requires. Ecommerce has
becoming a way of life and next day the company will deliver the fact of life. Moreover,
it is not always acknowledged that the fastest is the best as it depends upon the ways in
which the time and efforts are expended. Various leading companies such as Morrison
have found the ways in which they can succeed to make this happen (Hinterhuber and
Nilles, 2021). Company minimizes customer efforts at this stage and create friction less
processes as they are always looking for instant gratification due to lack of time they
have as per current scenario. Removal of obstacles delays customer decision making
process and hence makes them achieve their objectives which increase the loyalty.
 Personalization: Advancement into technologies helps the companies in order to create
much more personal as well as human experiences across different channels as well as
among buying stages. On the other hand, personalization is quite more than just
technology and undoubtedly an enabler as it represents the ways in which the customers
left feeling about themselves after an interaction. Great personalization is making the
consumers feel more into control, valued and important after their interaction with the
company. At this specific point of time, the Morrison uses individualize attention in order
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to drive emotional connection with their customers which is among the most significant
and valuable component of personalization. At this stage, the management and leaders of
the company understand their users in complete manner and also identify their original
requirements after considering their past interactions, experiences and through
appropriate actions create high level of attention. This enables them to make them feel
valuable and extremely attentive towards them.
 Empathy: Understanding customer’s requirements and experience emotionally is
strongly associated with empathy. Creating a strong relationship with their users is
possible with empathy which helps to create behaviour. This allows Morrison to show
their customers that they understand how consumers feel and then give solutions because
of their great level of understanding. At this stage, the Morrison tries their maximum to
understand consumer circumstances and create relationship with them into empathetic
manner. This make the users of Morrison feels that the company is well known about
their requirements and feelings along with also interested into providing them effective
solutions to their difficulties and problems and make them sure that their issues will be
addressed by the company in most successful manner. This also enables them to
reconstruct their position among the minds of customers and gain them back.
Implications of digital disruptions
Digital technology has completely changed the customer experience and the way in which
they used to interact with the organisation. Morrison is intensively using social media, websites,
email marketing and other digital platforms for approaching customers. Thus as result customers
are not physically or time bounded to communicate with the organisation. Instead due to digital
platforms it has become possible for the customers to instantly interact with Morrison and to
order products and services online at any instant of time. Digital technology has also allowed
customers to openly and more clearly express their concerns and need so that organisation can
made necessary changes in offerings. For instance, with growing demand of healthy food over
internet Morrison was able to identify the need and to launch a new healthy food range. In
addition to online delivery and quick satisfactory services it is also possible for the customers to
have clear comparison of the services provided by Morrison as well as other competitors.
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For instance, on digital platforms customers are able to compare the difference in value
offering, prices as well as quality. This makes it more important for the organisation to maintain
high quality standard and customer experience so that its sustainable performance can be
maintained. Another benefit of digital technology is that customer experience becomes more
flexible, transparent and efficient at every stage of customer journey map (Mihardjo and et.al.,
2019). The use of digital technology in services has made it possible for the customers to
themselves identify and observe the efforts and journey of the organisation so that they can make
their purchasing decisions. It is the result of digital technologies which has made customer needs
and voice highly impactful and strong.
Strategic recommendations over which the Morrison improves their customer experiences in
order to benefit them and the company as well
In order to adopt certain strategies by the Morrison, the company can able to improve their
consumer experiences by providing them best practices and actions which provides appropriate
benefits to the firm are:
 Be more competitive: In order to become more competitive the company requires
helping their users and consumers through which they are able to create profits. With this
the Morrison will invest into prices and improve their product quality across thousands of
consumer’s favourite items.
 Serve consumers in better ways: The Morrison listen to their users in order to make
necessary improvements all across their business activities. They keeps on improving
their offers with the help of advantages that are available by taking appropriate feedback
from their users and provide them various significant options as and when it is required.
 Speed up and simplify the establishment: Morrison builds a culture which is totally
based on team work and do participate into activities on collaborative manner. Thus, the
company introduces flexible and remote working all across the week to make their
support at maximum level and thus support their sites as well as stores (Matarazzo and
et.al., 2021).
 Creating and scaling for profitable expansion: The Morrison pursue their opportunities
with their owner’s spirit as well as company’s thirst through which they have to act fast
and rapid manner along with the ideas that work in most suitable ways. The company
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keeps on improving their product range along with consistently innovate, learn and apply
improvements across the company.
 Market segments: In order to get better benefits, the company can able to utilize
segmentation matrix in order to identify the market segments by Morrison. After keeping
in mind the organic growth and acquisition of market options he segmentation criteria has
been adopted in order to define the recognized market segments. The consumers are
segmented over the basis of their preference of value of money, convenience along with
services for buying their items as per their requirements and desire.
 Targeting strategy: In order to target appropriate persons into the market space,
Morrison can employ three major targeting strategies which includes differentiated,
undifferentiated and concentrated. At this specific point of time, Morrison will have to
adopt strategies that will enable them to enhance their market share. Moreover, the
undifferentiated strategy is highly suitable for the Morrison that can convey similar kind
of message to their every user or consumer. In addition to this, it has been evaluated and
according to which it has been suggested to the company to not go for concentrated and
differentiated strategies because that are not at all suitable for the firm (Schmitz, Dietze
and Czarnecki, 2019). However, setting up joint promotional campaigns as well as
exploiting emerging trends is also highly helpful in order to target the users.
CONCLUSION
From the above report, it has been concluded that a remarkable consumer experience is
highly critical to the sustained growth and expansion of any business. An optimistic consumer
experiences helps to promotes loyalty, retain their users as well as encourage brand advocacy.
Moreover, from the above illustrated report it had been highlighted that consumers have the
power but not the sellers.
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REFERENCES
Books and Journals
Briedis, H. and et.al., 2020. Adapting to the next normal in retail: The customer experience
imperative.
Hinterhuber, A. and Nilles, M., 2021. Digital transformation, the holy grail and the disruption of
business models. Business Horizons.
Matarazzo, M. and et.al., 2021. Digital transformation and customer value creation in Made in
Italy SMEs: A dynamic capabilities perspective. Journal of Business
Research, 123, pp.642-656.
Mihardjo, L. and et.al., 2019. Digital leadership role in developing business model innovation
and customer experience orientation in industry 4.0. Management Science
Letters, 9(11), pp.1749-1762.
Quach, S., and et.al., 2020. Service integration in omnichannel retailing and its impact on
customer experience. Journal of Retailing and Consumer Services, p.102267.
Schmitz, M., Dietze, C. and Czarnecki, C., 2019. Enabling digital transformation through robotic
process automation at Deutsche Telekom. In Digitalization cases (pp. 15-33).
Springer, Cham.
Shi, S. and et.al., 2020. Conceptualization of omnichannel customer experience and its impact
on shopping intention: A mixed-method approach. International Journal of
Information Management, 50, pp.325-336.
Sorrentino, A., 2020. Defining, Measuring and Managing Consumer Experiences. Routledge.
Tjakraatmadja, J.H. and Handayani, D.W., 2019, December. Mapping six characteristics of new
learning organization in Indonesian education technology startups. In Proceedings
of the International Conference on Intellectual Capital, Knowledge Management
and Organisational Learning (pp. 340-347).
Online
Morrisons corporate, company history, 2022. [Online]. Accessed through <
https://www.morrisons-corporate.com/about-us/company-history/ >
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